Almost 75 percent of U.S. plants are over 20 years old. As equipment ages, downtime increases, and the true cost of downtime is more than just lost production. Without a good handle on the true cost of downtime, decisions are flawed. Most factories lose 5 to 20 percent of production capacity from downtime. Eighty percent of plants can’t estimate the cost of downtime accurately, with many underestimating by 200 to 300 percent. Without accurate numbers, how do you know you are making the right repair or replacement decisions?

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Maintenance is a controllable expense, but for the proactive. Research puts maintenance costs at 9–30 percent of the cost of goods sold at a typical process plant, and 4–8 percent per year of the replacement value of the process plant itself.

While it may be wise to rely on redundant equipment, like spare tanks, to maintain production reliability, it’s best to have a long-lasting, affordable solution. Some rely on a supplier’s guarantee. But what is the purpose of a short guarantee for a tank expected to be in service for years? Decisions should consider total cost of ownership.